Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ACC makes recommendations on levy cuts

24 July 2014

ACC makes recommendations on levy cuts

After considering public feedback, ACC has made some changes to the proposed 2015/16 levies it consulted on during May and June, but will still recommend that the Government implements across the board levy cuts next year.

“We haven’t changed the combined value of all the levy cuts we’re recommending, but we have recommended changing how we apportion levy cuts across ACC motor vehicle levies, which include licence levies and the ACC petrol levy,” says ACC Chairperson, Paula Rebstock.

ACC is recommending the following changes to levies in 2015/16:
• 21% reduction to average work levy
• 5% reduction to earners’ levy
• 40% reduction to combined average motor vehicle levies.

“We’ve taken on board feedback that applying a large chunk of motor vehicle levy cuts to the petrol levy would disadvantage those who travel low mileages in their vehicles, and who therefore buy less petrol.”

“As a result, we’re now recommending that the petrol levy be cut to 7.9 cents per litre, rather than 5.9 cents per litre as we originally proposed.

“To balance this smaller cut to the petrol levy, we’re recommending bigger cuts to annual licence levies.

“In the final wash, vehicle owners will benefit from the same overall level of levy cuts that we originally proposed. The cuts will just be spread more fairly across annual licence levies and the petrol levy.”

ACC is not recommending cuts to motorcycle levies, which are already heavily subsidised by other vehicle owners.

Ms Rebstock says the changes made to the cuts originally proposed by ACC show the important role that public consultation plays.

“We consider all the submissions we receive, and where a good case for change is made, we take this into account when shaping our recommendations.”

Risk rating, which would see car owners pay a levy that reflects how their vehicle’s design affects injury outcomes in a crash, remains part of the levy changes ACC is recommending to the Government.

“We received good support for risk rating, and if the Government gives us the green light to implement it, we’ll continue to work closely with key stakeholders to fine tune the way risk rating will be applied to different vehicles, to ensure this meets industry expectations as much as possible.”

Ms Rebstock says that while owners of safer cars will benefit the most from ACC’s recommended motor vehicle cuts, all car owners will pay lower levies if the cuts are implemented.

“This is a significant package of levy cuts we’re recommending, made possible by the fact that the ACC Scheme is now fully funded.”

Full funding means ACC has sufficient financial assets to meet the lifetime costs of all existing claims.

“The scheme is in a strong financial position, and we’re committed to lifting the level of service that ACC provides, to ensure this is a scheme that all New Zealanders have full trust and confidence in.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news